-

CONFIDENTIAL -

December 16, 2012

Special Committee of the Board of Directors of Collie

Exhibit (c)(7)

Project Canine

Confidential Discussion Materials for the

1

-

CONFIDENTIAL -

Disclaimer

This

presentation

has

been

prepared

by

Centerview

Partners

LLC

(

“Centerview”)

for

use

solely

by

the

Special

Committee

of

the

Board

of

Directors (the “Special Committee”) of Collie (the “Company”) and the Audit Committee of the Board of Directors of the Company (the

“Audit Committee”) in connection with its evaluation of the proposed transaction and the Company’s strategic alternatives and for no

other purpose. The information contained herein is based upon information supplied by the Company and publicly-available information,

and

portions of the information contained herein may be based upon statements, estimates and forecasts provided by the Company. We

have relied upon the accuracy and completeness of the foregoing information, and have not assumed any responsibility for any independent

verification of such information or for any independent evaluation or appraisal of any of the assets or liabilities (contingent or otherwise) of

the Company or any other entity, or concerning solvency or fair value of the Company, its assets or any other entity. With respect to

financial forecasts, we have assumed that such forecasts have been reasonably prepared on bases reflecting the best currently

available

estimates

and

judgments

of

the

management

of

the

Company

as

to

the

future

financial

performance

of

the

Company,

and

at

your

direction

we

have

relied

upon

such

forecasts,

as

provided

by

the

Company’s

management,

with

respect

to

the

Company

and

Shepherd.

We assume no responsibility for and express no view as to such  forecasts or the assumptions on which they are based. The information set

forth herein is based upon economic, monetary, market and other conditions as in effect on, and the information made available to us as of,

the date hereof, unless indicated otherwise.

The financial analysis in this presentation is complex and is not necessarily susceptible to a partial analysis or summary description. In

performing this financial analysis, Centerview has considered the results of its analysis as a whole and did not necessarily attribute a

particular weight to any particular portion of the analysis considered. Furthermore, selecting any portion of Centerview's analysis, without

considering the analysis as a whole, would create an incomplete view of the process underlying its financial analysis. Centerview may have

deemed various assumptions more or less probable than other assumptions, so the reference ranges resulting from any particular portion of

the analysis described above should not be taken to be Centerview’s view of the actual value of the Company.

These

materials

and

the

information

contained

herein

are

confidential,

were

not

prepared

with

a

view

toward

public

disclosure,

and

may

not

be

disclosed

publicly

or

made

available

to

third

parties

without

the

prior

written

consent

of

Centerview.

These

materials

and

any

other

advice, written or oral, rendered by Centerview is intended solely for the benefit and use of the Special Committee and the Audit

Committee

(in

their

capacity

as

such)

in

their

consideration

of

the

proposed

transaction,

and

are

not

for

the

benefit

of,

and

do

not

convey

any rights or remedies for any holder of securities of the Company or any other person. Centerview will not be responsible for and has not

provided any tax, accounting, actuarial, legal or other specialist advice. This presentation is not a fairness opinion, recommendation,

valuation or opinion of any kind, and is necessarily incomplete and should be viewed solely in conjunction with the oral presentation

provided by Centerview.

2

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CONFIDENTIAL -

Overview of Shepherd Proposal

Consideration

Conditions to

Sign -

General

$2.97/share in cash for 100% of equity interests it does not already own

Approval of Collie and Shepherd Boards of Directors

Approval of St. Bernard

Structure

Reverse triangular merger

Conditions to

Sign -

SIGs

Significant

Conditions to

Close

Termination /

Termination

Payment(s)

Board can change its recommendation if required to do so pursuant to its fiduciary duties, subject to (i) no fiduciary

termination right and (ii) force-the-vote provision

If merger agreement is terminated because (i) the Shepherd/St. Bernard transaction is terminated (other than for a

replacement

transaction)

or

(ii)

the

outside

date

is

reached

and

the

Shepherd/St.

Bernard

transaction

has

not

closed

and

Collie is not in breach of its reps or covenants, Shepherd must (a) make a $100mm prepayment against accelerated

network buildout

(1)

and (b) forgive $120mm of interim financing

(1)

Prepayment payable in January 2014 assuming network milestones have been satisfied.

$21mm basket for retention payments to non-management employees

Other

Key Terms –

Merger Agreement

Collie shareholder vote

Closing of Shepherd/St. Bernard transaction (or closing of a replacement transaction)

No MAE on Collie

Regulatory approval (Shepherd required actions limited to actions that would not have an MAE measured against Collie)

and other standard closing conditions

Voting agreements in favor of the transaction

Equityholders’

Agreement

terminated

at

closing

SIG put right to Shepherd at deal price (pursuant to RoFO) if Collie shareholders do not approve merger

3

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CONFIDENTIAL -

Overview of Shepherd Proposal

Availabilities

Amount / Coupon

/ Other

Conversion

(1)

Collie

shareholder

vote

will

be

required

to

issue

shares

beyond

(i)

Nasdaq

20%

rule

and

(ii)

current

authorized

shares

of

360mm.

Vote

on

share

issuance and vote

on

merger

will

be cross-contingent

.

Key Terms –

Interim Financing

Up to $800mm

1.00% Senior Exchangeable Notes

Due 2018

NCL

$1.50/share

(principal

subject

to

adjustment

–

see

below)

Convertible at Collie’s option if merger agreement is terminated because the Shepherd/St. Bernard transaction does not

close

Otherwise always convertible at Shepherd’s option

$80mm per month, subject to caps on principal at:

–

$400mm if shareholders have not approved issuance of additional shares

(1)

–

$560mm if network milestones are not mutually-agreed within 45 days

Forgiveness of

Principal

Shepherd

will

forgive

$120mm

of

principal

if

merger

agreement

is

terminated

because

(i)

the

Shepherd/St.

Bernard

is

terminated (other than for a replacement transaction) or (ii) the outside date is reached and the Shepherd/St. Bernard

transaction has not closed and Collie is not in breach of its reps or covenants

4

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CONFIDENTIAL -

Overview of Shepherd Proposal

Source:

Collie management, Company filings and FactSet, as of December 14, 2012.

Note:

U.S. dollars in millions, except per MHz-pop and per share amounts.  Date ranges reflect calendar ranges.

(1)

Based on fully-diluted shares outstanding.

(2)

Based

on

projected

December

31,

2012

net

debt

balance

of

$5.5bn,

including

$1.8bn

NPV

of

spectrum

leases.

(3)

Based on 47.0bn MHz-pops.

(4)

Based on closing prices prior to December 11, 2012 “leak.”

Key Financial Statistics

(4)

(4)

Day Prior to

Shepherd /

Prelim.

St. Bernard

Proposal

"Leak"

Current

Proposal

Price

$1.30

$2.12

$2.40

$3.37

$2.97

Date

10/10/12

11/20/12

12/10/12

12/14/12

Aggregate Equity Value

(1)

$1,942

$3,168

$3,587

$5,039

$4,440

Aggregate Enterprise Value

(2)

7,400

8,625

9,044

10,496

9,897

EV / MHz-pop

(3)

$0.157

$0.184

$0.192

$0.223

$0.211

Transaction Highlights

Increase vs. Preliminary Proposal

$280 / 14.2%

Value of Non-Shepherd Equity

2,245

Premia

vs. Spot Prices

Current ($3.37)

(11.9%)

52-Wk. High ($2.69)

10.4%

1-Day Prior to "Leak" ($2.40)

23.8%

1-Day Prior to Preliminary Proposal ($2.12)

40.1%

1-Day Prior to Shepherd Acknolwedgement of St. Bernard Discussions

($1.30)

128.5%

52-Wk. Low ($0.90)

230.0%

vs. Trading Averages

(4)

4-Weeks ($2.27)

30.8%

3-Mos. ($1.93)

54.1%

6-Mos. ($1.63)

82.7%

5

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CONFIDENTIAL -

Overview of Valuation Methodologies Employed

Comments

Observations

Historical

Trading

Ranges

Reflects Collie trading levels both before and since the

announcement of the Shepherd/St. Bernard transaction

$0.90 -

$2.69

Closed 12/11/12 at $2.68

See page 7

Precedent

Transactions

All cash transactions

Minority squeeze-outs

Each transaction is situation-specific

Median of both cash transactions overall and minority

squeeze-outs is in the ~30%-40% range

See pages 10-11

Analyst Price

Targets

Wide range of expectations and assumptions

Generally based on per-MHz-pop valuations and DCF

$2.00 -

$4.00

See page 8

Precedent

Spectrum

Acquisitions

Recent strategic acquisitions of material spectrum blocks

–

Based on transactions involving MSS, WCS and

2.5GHz spectrum bands

Each transaction is situation-specific with valuations

affected by a number of factors

Most-similar spectrum has traded in the range of $0.18 -

$0.26

(2)

/ MHz-pop

See page 9

Discounted

Cash Flow

Analysis

Illustrative intrinsic value based on projected FCF

Based on two Management cases, one assuming

additional wholesale customer(s) and another

assuming Shepherd remains only customer

DCF less significant to analysis given (i) Management’s

view of continuing challenge in attracting additional

wholesale customer(s) and (ii) requirement of significant

additional funding, which may not be available

Does not reflect proceeds from divestiture of excess

spectrum; indicative Dalmatian proposal implies

additional value of ~$1.40 per share.

See page 12-14

(1)

Based

on

closing

prices

prior

to

December

11,

2012

“leak.”

(2)

Price/MHz-pop

for

AT&T

acquisition

of

Nextwave

spectrum

includes

C/D

blocks

not

immediately

usable

due

to

requirement

for

“guard

bands.”

Excluding  guard

bands

yields

implied

price

of

$0.37/MHz-pop.

Trading

Comparables

We have considered and reviewed potential trading

comparables, but not included in our analysis due to

lack of meaningful comparability to Collie

Centerview’s valuation analysis includes a number of different valuation methodologies, each

with its own particular considerations

range (excluding high/low)

52-week range (based on closing prices)

(1)

6

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CONFIDENTIAL -

Pre-Leak Historical Trading Ranges

52-Week Closing Low -

7/25/12

52-Week Closing High -

10/15/12

Analyst Price Targets

(1)

Precedent Spectrum Acquisitions

(2)

$0.176 -

$0.255 / MHz-POP

Precedent Cash Transactions

~32% Premium to 1-Day Pre-Shepherd / St. Bernard ($1.30)

~32% Premium to 1-Day Prior to Preliminary Offer ($2.12)

~38% Premium to 12/10/12 Close ($2.40)

Precedent Minority Squeeze-Outs

~30% Premium to 1-Day Pre-Shepherd / St. Bernard ($1.30)

~30% Premium to 1-Day Prior to Preliminary Offer ($2.12)

~30% Premium to 12/10/12 Close ($2.40)

DCF -

Single-Customer Case

(3)

10.0% -

17.5% WACC

1.0% -

3.0% Perpetuity Growth Rate

DCF -

Multi-Customer Case

10.0% -

17.5% WACC

1.0% -

3.0% Perpetuity Growth Rate

$3.45

$1.70

$1.70

$1.90

$2.00

$0.90

$0.75

$3.10

$3.30

$4.35

$4.00

$2.69

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

Note:

Figures rounded to nearest $0.05, except historical trading ranges.

(1)

Excludes high and low price targets.

(2)

Based on transactions involving MSS, WCS and 2.5GHz spectrum bands. Price/MHz-pop for AT&T acquisition of Nextwave spectrum includes

C/D

blocks

not

immediately

usable

due

to

requirement

for

“guard

bands.”

Excluding  guard

bands

yields

implied

price

of

$0.37/MHz-pop.

(3)

Negative equity values expressed as $0.00. Does not reflect proceeds from divestiture of excess spectrum; indicative Dalmatian proposal

implies additional value of ~$1.40 per share.

$15.50

$0.00

$2.97

Valuation Summary

$2.80

$2.75

7

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CONFIDENTIAL -

–

50

100

150

200

250

300

350

400

450

500

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

Dec-11

Feb-12

Apr-12

Jun-12

Aug-12

Oct-12

Dec-12

Recent Share Price Performance and Trading Volume

Source:

FactSet, as of December 14, 2012.

Note:

Trading volume in millions of shares.

(1)

Based on closing prices prior to December 11, 2012 “leak.”

Shepherd Proposal: $2.97

Shepherd / St.

Bernard

(10/11/12)

Shepherd / Collie 

Leak

(12/11/12)

Shepherd 13D

Filed

(12/13/12)

Preliminary

Shepherd Offer

(11/21/12)

Shepherd / English 

Setter Transaction

(10/18/12)

(1)

Collie Price History

Spot Prices

Current

$3.37

52-Wk. High

(1)

2.69

1-Day Prior to "Leak"

2.40

1-Day Prior to Preliminary Proposal

2.12

1-Day Prior to Shepherd Acknowledgement of St. Bernard Discussions

1.30

52-Wk. Low

0.90

Trading Averages

(1)

4-Weeks

$2.27

3-Months

1.93

6-Months

1.63

8

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CONFIDENTIAL -

Source:

Wall Street research and FactSet. Excludes analysts for whom price target is not available.

Note:

Reflects price targets prior to December 11, 2012 “leak.”

(1)

Reflects standardized text, as per ThomsonOne.

(2)

Reflects near-term price target, as per analyst research.

Analyst Price Targets

Price

Report

Valuation

Analyst

Rating

(1)

Target

(2)

Date

Methodology

Zachary

Buy

$5.00

Oct-12

not provided

BofA Merrill Lynch

Buy

4.00

Oct-12

$0.15-$0.30 / MHz-pop

JPMorgan

Hold

4.00

Dec-12

$0.28 / MHz-pop

Wells Fargo

Buy

3.75

Jul-12

$0.17-$0.19 / MHz-pop

Davidson

Buy

3.00

Oct-12

not provided

Guggenheim

Buy

3.00

Oct-12

not provided

JANCO

Buy

2.75

Aug-12

not provided

Macquarie

Hold

2.75

Nov-12

DCF "Scenario Analysis"

RBC

Hold

2.50

Nov-12

$0.25 / MHz-pop

Jefferies

Hold

2.00

Oct-12

DCF / Spectrum-based

Evercore

Hold

1.75

Oct-12

Spectrum-based

UBS

Hold

1.75

Oct-12

DCF-based

9

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CONFIDENTIAL -

Precedent Spectrum Acquisitions

Source:

Company filings, FCC reports and Wall Street research.

Note:

Figures in millions, except $ / MHz-pop.

(1)

Reflects

total

transaction

size

at

headline

“target”

price

of

$20

/

share

(price

after

post-closing

adjustments

to

be

within

$17-$23

range).

(2)

Reflects Shepherd spectrum to be contributed, as of 4/30/08.  Merger agreement specifies a minimum of 27,540 MHz-pop at closing.

(3)

Transaction was primarily WCS but also included AWS spectrum.

(4)

Includes

C/D

blocks

not

immediately usable

due

to

requirement

for “guard bands.”

1,607

MHz-pop

excluding

C/D

blocks.

(5)

Final closing prices as per Q1’12 10-Q.

(6)

Divestiture included both 10 and 20 MHz blocks; assumes average of 15 MHz, as per Wall Street research.

(3)

(4)

(2)

(5)

(5)

(1)

(6)

Precedent spectrum valuations are influenced by a number of factors including: situational context (e.g., distressed sale), immediately

deployable

vs.

requiring

regulatory

approval,

strategic

value

to

acquiror,

portfolio

size,

geographic

coverage,

useable

spectrum

as

a

percentage of total portfolio, etc.

Date

Txn

Total

Acquiror

Target

$ / MHz-pop

Annc.

Value

MHz-pop

Comment

Collie

Shepherd

Spectrum

5/7/08

7,400

28,989

Reflects price for spectrum contributed by Shepherd for

stake in Collie

Dalmatian

Collie

NA

2,460

11,367

Preliminary Dalmatian proposal to Collie

Shepherd

English

Setter

10/18/12

9,897

47,000

Based on $2.97/share

Collie

BellSouth

2/15/07

300

1,700

Regulatory divestiture in connection with

AT&T/BellSouth

AT&T

NextWave

8/2/12

600

2,846

Price includes guard bands; ex. yields $0.37 / MHz-pop

Subject to FCC approval of AT&T / Sirius plan

Harbinger

(LightSquared

SkyTerra

9/23/09

1,849

7,500

Regulatory requirement for significant build-out

Dalmatian

DBSD

2/1/11

1,364

6,000

Transactions included satellites

Required $114mm payment to Shepherd

Dalmatian

Terrestar

6/14/11

1,382

6,600

FCC approval required prior to terrestrial use

Distressed sale

Verizon

SpectrumCo

12/2/11

3,600

5,180

Contiguous with holdings / able to immediately deploy

Part of larger agreement with Cable Companies

Verizon

Cox

12/16/11

315

560

Contiguous with holdings / able to immediately deploy

Complementary to SpectrumCo Acquisition

Various

Nextwave

Spectrum

7/17/08

150

593

$0.253

$0.563

$0.695

$0.209

$0.227

$0.247

$0.211

$0.176

$0.211

$0.216

$0.255

10

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CONFIDENTIAL -

Precedent Premiums Paid in Recent Cash Transactions

Source:

Thomson SDC.

(1)

Includes 108 cash-only transactions announced since January 1, 2009 with non-financial, non-real estate public U.S. targets.

25    Percentile

Median

Mean

75    Percentile

Shepherd Proposal

Selected Cash Transactions with Equity Values between $1.0-$5.0 billion

Pre-Leak

Prior to

St. Bernard-Shepherd

Announcement

Prior to

Preliminary

Proposal

20%

32%

38%

45%

24%

40%

128%

23%

35%

39%

44%

20%

38%

123%

26%

37%

46%

52%

34%

59%

84%

1-

Day 1-

Wk 4-

Wks

-

Day 1-

Wk 4-

Wks

1-

Day 1-

Wk 4-

Wks

1-

Day 1-Wk 4-

Wks

1-

Day 1-

Wk 4-

Wks

1-

Day 1-

Wk 4-

Wks

-Day 1-

Wk 4-

Wks

1

1

(1)

th

th

Preliminary Offer

Final Offer

Date

Ownership

Txn

Premium

Price

Annc.

Closed

Target

Acquiror

% Prior

% Acq.

% PF

Value

(1)

Price

Prem.

(2)

Price

1-Day

1-Week

4-Week

Increase

(3)

6/2/10

8/30/10

Gerdau

Ameristeel

Gerdau Steel N.

America

66.3%

33.7%

100.0%

$1.6

$11.00

53.4%

$11.00

53.4%

57.1%

56.9%

-

9/4/09

10/28/09

Odyssey Re

Holdings

Fairfax Financial

Holdings

72.6%

27.4%

100.0%

1.0

60.00

20.0%

65.00

30.0%

29.9%

39.9%

8.3%

8/12/08

11/5/08

UnionBanCal

Bank of Tokyo-

MUFJ

65.4%

34.6%

100.0%

3.7

63.00

9.1%

73.50

27.2%

29.5%

104.4%

16.7%

7/21/08

3/26/09

Genentech

Roche Holdings AG

55.7%

44.3%

100.0%

46.8

89.00

8.8%

95.00

16.1%

26.0%

28.1%

6.7%

3/10/08

1/2/09

Nationwide

Financial

Nationwide Mutual

Insurance

66.3%

33.7%

100.0%

2.5

47.20

26.7%

52.25

40.2%

31.0%

31.0%

10.7%

11/20/06

4/20/07

TD Banknorth

TD Bank Financial

Group

57.0%

43.0%

100.0%

3.2

32.33

7.3%

32.33

7.3%

9.1%

8.6%

-

2/6/06

5/16/06

Lafarge North

America

Lafarge S.A.

53.2%

46.8%

100.0%

2.9

75.00

17.4%

85.50

33.8%

34.4%

40.5%

14.0%

9/1/05

11/8/05

7-Eleven

Seven & I Holdings

72.7%

27.3%

100.0%

1.3

32.50

14.7%

37.50

32.3%

31.0%

14.1%

15.4%

8/2/04

12/8/04

Cox

Communications

Cox Enterprises

62.2%

37.8%

100.0%

8.5

32.00

16.0%

34.75

26.0%

24.6%

25.2%

8.6%

Min

7.3%

7.3%

9.1%

8.6%

-

Mean

19.3%

29.6%

30.3%

38.8%

8.9%

Median

16.0%

30.0%

29.9%

31.0%

8.6%

Max

53.4%

53.4%

57.1%

104.4%

16.7%

Mean

11.5%

Median

10.7%

Precedent Minority Squeeze-Out Transactions

Selected Cash Transactions Greater than $1.0 billion

Source:

Company filings, Thomson SDC, Bloomberg and Capital IQ.

Note:

Date

ranges

reflect

calendar

ranges

(e.g.,

4

weeks

days

reflects

28

calendar

days).

(1)

Reflects value of equity acquired. U.S. dollars in billions.

(2)

Premium to target’s stock price 1-day prior to preliminary announcement.

(3)

Initial to final.

All Transactions

Transactions with Price Increases

11

-

CONFIDENTIAL -

12

-

CONFIDENTIAL -

Management has provided Centerview with two sets of financial projections, differing primarily with

respect to the Company’s assumed wholesale customer base:

–

Single-Customer Case (“SCC”)

assumes Shepherd remains Collie’s only wholesale customer

–

Multi-Customer Case (“MCC”)

assumes substantial non-Shepherd LTE network traffic beginning in 2014

(~70% of total revenue by 2015)

Both cases assume ongoing LTE upgrades and retail strategy consistent with announced plans

We have also reviewed a “Modified SCC,”

prepared by Collie management, which reflects a slightly-faster

network buildout; results are immaterially different from SCC

In evaluating the feasibility and value of these plans, we note the following:

–

Despite a concerted effort over the past several years, Collie has yet to attract another meaningful

wholesale customer other than Shepherd

•

Given an estimated nine-month lead time to put traffic on-net, the MCC implies one or more very

significant new-customer win(s) in the immediate future

–

Both the SCC and the MCC contemplate substantial funding gaps (~$4bn and ~$2bn, respectively) to

reach free cash flow positive

•

Potential sources of funds include capital markets solutions and/or spectrum sales, but uncertainty

around the timing and amount of available funding impacts the feasibility of these plans

Management Plan Overview

Centerview Observations

Source:

Collie management.

(1)

Analysis does not reflect proceeds from divestiture of excess spectrum; indicative Dalmatian proposal implies additional value of

~$1.40 per share.

(1)

13

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CONFIDENTIAL -

12 -'20

2011A

2012E

2013E

2014E

2015E

2016E

2017E

2018E

2019E

2020E

CAGR

SCC

Revenue

$1,253

$1,262

$1,191

$839

$1,211

$1,714

$2,101

$2,434

$2,749

$2,904

11.0%

Adjusted EBITDA

(1)

($305)

($168)

($267)

($717)

($387)

$106

$745

$1,287

$1,554

$1,640

NM

% Margin

-24.3%

-13.3%

-22.4%

-85.4%

-32.0%

6.2%

35.5%

52.9%

56.5%

56.5%

Capital Expenditures

(220)

(157)

(293)

(317)

(154)

(171)

(238)

(243)

(279)

(298)

8.4%

Interest Expense

(477)

(514)

(512)

(511)

(511)

(510)

(510)

(510)

(510)

(510)

-0.1%

Free Cash Flow

(1,368)

(624)

(1,065)

(1,545)

(1,267)

(641)

(57)

487

725

812

NM

Cash Balance / (Deficit)

$1,108

$828

($301)

($1,882)

($3,181)

($3,845)

($3,481)

($2,794)

($2,021)

MCC

Revenue

$1,253

$1,262

$1,207

$1,082

$2,351

$3,905

$5,098

$6,145

$7,141

$7,447

24.8%

Adjusted EBITDA

(1)

($305)

($168)

($280)

($482)

$748

$2,275

$3,696

$4,871

$5,763

$5,940

NM

% Margin

-24.3%

-13.3%

-23.2%

-44.5%

31.8%

58.3%

72.5%

79.3%

80.7%

79.8%

Capital Expenditures

(220)

(157)

(327)

(294)

(235)

(390)

(510)

(614)

(714)

(745)

21.5%

Interest Expense

(477)

(514)

(512)

(511)

(511)

(510)

(510)

(510)

(510)

(510)

-0.1%

Free Cash Flow

(1,368)

(624)

(1,113)

(1,269)

(389)

1,200

2,524

2,184

2,600

2,768

NM

Cash Balance / (Deficit)

$1,108

$828

($350)

($1,654)

($2,075)

($898)

$1,596

$3,743

$6,306

$9,036

($3,932)

Management Plan Overview

Source:

Financial projections per Collie management.

Note:

U.S. dollars in millions.

(1)

Adjusted EBITDA excludes non-cash charges per Collie management calculation.

Financial Summary

Indicates Maximum Funding Gap

14

-

CONFIDENTIAL -

Illustrative DCF Value

Plan requires ~$2.0 billion additional

funding to achieve forecast

Plan requires ~$4.0 billion additional

funding to achieve forecast

Source:

Financial projections per Collie management.

Note:

Includes present value of NOLs per management.

SCC –

Equity Value / Share

MCC –

Equity Value / Share

SCC –

Implied Terminal Value Multiple

MCC –

Implied Terminal Value Multiple

Perpetuity Growth Rate

e

($1.4)

1%

2%

3%

10.0%

($0.09)

$0.28

$0.76

15.0%

(1.81)

(1.70)

(1.58)

Perpetuity Growth Rate

e

$6.7

1%

2%

3%

10.0%

$12.20

$13.64

$15.50

15.0%

5.25

5.67

6.15

Perpetuity Growth Rate

4.5x

1%

2%

3%

10.0%

5.4x

6.1x

7.0x

12.5%

4.2

4.7

5.2

15.0%

3.5

3.8

4.1

17.5%

2.9

3.2

3.4

Perpetuity Growth Rate

4.8x

1%

2%

3%

10.0%

5.7x

6.5x

7.5x

12.5%

4.5

5.0

5.5

15.0%

3.7

4.0

4.4

17.5%

3.1

3.4

3.6

12.5%

(1.16)

(0.97)

(0.74)

17.5%

(2.23)

(2.16)

(2.09)

12.5%

7.92

8.65

9.54

17.5%

3.45

3.71

4.00

15

-

CONFIDENTIAL -

Source:

Bloomberg, Ibbotson and Advantage Data.

(1)

Based on yield-to-worst of currently outstanding traded notes.

Illustrative WACC Over Time

Max Debt Yields

Prior to St. B.

Pre-Leak

(10/11/11)

(10/10/12)

(12/10/12)

Cost of Equity

14.3%

14.5%

12.9%

Cost of Debt –

At Par

Wtd

Avg.

Cost

of

Debt

(Incl.

Leases)

–

At

Par

11.1%

11.1%

11.1%

(Less): Taxes @ 38%

(4.2%)

(4.2%)

(4.2%)

After-Tax Cost of Debt –

At Par

6.9%

6.9%

6.9%

WACC –

At Par

9.1%

9.2%

9.6%

Cost of Debt –

Based on Traded Notes Yield-to-Worst

Weighted Avg. Yield-to-Worst

27.4%

12.5%

9.2%

(Less): Taxes @ 38%

(10.4%)

(4.8%)

(3.5%)

After-Tax Cost of Debt –

At Yield-to-Worst

17.0%

7.8%

5.7%

WACC –

At Yield-to-Worst

16.2%

9.8%

8.9%

(1)

Illustrative WACC Analysis